But that's not exactly how it works. Charity leaders acknowledge they may take years before using that money.

The rest is being held in reserve to address long-term recovery needs in New Jersey, New York and Connecticut in the next few years, a strategy that has drawn criticism from some Sandy victims and a charity watchdog group.

Among them is Melissa Koenig, whose family was displaced from their Union Beach, N.J., home for about six months.

She said she contacted the Salvation Army, which has its New Jersey headquarters 30 miles away in Union, N.J., this fall, seeking help with temporary housing while her home was being lifted, but by the time she heard back from anyone several weeks later, she and her husband had paid $2,000 for a trailer and the lifting project was finished.

"I think it's ridiculous," Koenig said of the charity's long-term spending plan. "Figure out a way to disperse it. People need the money now."

However, Salvation Army leaders insist they are taking a prudent approach, based on the organization's many years of experience responding to disasters like Sandy.

The charity's ongoing Sandy work includes case management guidance, support groups for storm victims, material aid and short-term financial assistance, such as replacing lost furniture or making rent or mortgage payments.

At the Jersey Shore, the Salvation Army continues to operate drop-in Sandy assistance centers in Hazlet and Toms River. The charity also is one of the nonprofit groups collaborating to meet victims' needs through the long-term recovery groups in Monmouth and Ocean counties.

"We're providing direct services every day," said Brenda Beavers, the director of human services for the Salvation Army's New Jersey Division.

Maj. George Polarek, community relations and development secretary for the charity's eastern territory that covers 11 states including New Jersey, said it's true that the Salvation Army is best known for providing food, shelter, blankets and other forms of emergency relief in the immediate aftermath of a disaster.

But the charity also has a track record of remaining in affected communities for years after a disaster strikes, he said. The charity's outreach to victims of the Sept. 11 terror attacks continued for 10 years, and the charity is still tapping its $400 million Hurricane Katrina fund to help with ongoing long-term recovery efforts in the Gulf states, more than eight years after that storm.

"There are agencies that are going to expend their dollars and exhaust their budgets. I want the Salvation Army to ... be a backstop to the communities, and to be available to continue meeting changing needs. Because in six months, the needs that were perceived originally could change, community by community," Polarek said.

"The last thing you want is for a family to be turned away and say, 'Well, we're out of money,'" he said. "We want to be there for them and meeting some of those critical needs."

A restricted fund

The same Web page for the Sandy fund includes the statement: "If donations exceed Salvation Army expenses for a specific disaster, contributions are used to prepare for and serve victims of other disasters."

However, Polarek insisted this wasn't the case with the Sandy fund.

“They could have emptied that fund last winter when people were freezing in their broken homes, so I don't see why it's acceptable for an organization that specializes in emergency relief to hold onto 80% of what they raised nationally.”

Ben Smilowitz, Disaster Accountability Project

"It's not earmarked for anything else but Sandy, so 100% of it has to be spent for Sandy," he said. "It can't be used for any other activities or any other disasters that may have happened somewhere else."

"They're known as an emergency response organization, that's how they're known. If they want to re-brand, that's their prerogative, but they need to do it transparently," Smilowitz said.

"People across New Jersey and New York are still struggling. They could have emptied that fund last winter when people were freezing in their broken homes, so I don't see why it's acceptable for an organization that specializes in emergency relief to hold onto 80% of what they raised nationally," he said. "I don't think that's what donors intended. I think that most survivors would be upset."

New York Attorney General Eric T. Schneiderman is among those who have been sharply critical of charities for sitting on too much Sandy aid.

In July, his office released the results of a survey of 90 charities involved in Sandy relief efforts in the New York metropolitan area. It showed that after six months just 40% of the $575 million in total donations had gone to help Sandy victims.

The largest Sandy fundraiser, the American Red Cross, had used just $130 million of its about $300 million in fund as of April 1.

In response, several charities, including the Red Cross and a foundation started by New Orleans Saints quarterback Drew Brees, resolved to pick up the pace. The Red Cross now has allocated more than 90% of its Sandy fund.

Donors were informed

Patrick Rooney, a dean and professor of economics at Indiana University's Lilly Family School of Philanthropy, believes it is appropriate for charities like the Salvation Army to distribute disaster aid over a period of years, provided they are up front with donors at the onset.

The construction phase after a hurricane or flood is typically far more costly than the initial emergency response, he said. But no consensus has developed on what percentage of aid ought to be set aside for longer term use.

"There are professionals who are making judgment calls, and reasonable people can disagree," Rooney said.

Salvation Army leaders insist that the public was made aware of the fact that the charity was taking a long-term approach to Sandy relief.

"We tried to make it absolutely clear at every opportunity we had that this was going to be a long-term (effort)," Polarek said.

Beavers, the Salvation Army's New Jersey human services director, said the message was delivered both in mailings and online.

"We let people know that we've got our emergency response, we've got our emergency assistance, but we're in this for the long haul," she said.

However, nothing of that multi-year approach is mentioned explicitly on the New Jersey Division's Sandy donation Web page, nor does such language appear on a national donation Web page.

Beavers said the amount of emergency supplies needed right after the storm had a limit.

"There was such an immediate response from local groups and churches that it didn't make sense to duplicate efforts," she said. "Good stewardship is if the church down the street is already doing meals or handing out comfort kits, then let them do that because that's what they have the capacity to do."

New Jersey Assemblyman Sean Kean, a Republican from Monmouth who serves on the advisory board of the Asbury Park Corps of the Salvation Army, said he supports the way the charity is handling its Sandy fund.

"I'm not really in a position to question the timing of how they're going to contribute the money," Kean said. "People are stressed out and traumatized and still feeling the wrath of the storm, I understand that. But on the other hand, the agencies providing this aid are autonomous and, in this case, I believe, trustworthy. I'm sure they're going to do the right thing."